Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CAIB 1 > Chapter 2 Habitational Insurance > Flashcards

Chapter 2 Habitational Insurance Flashcards

1
Q

Homeowners basic form

A

Named perils on buildings and contents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Homeowners broad form

A

all risk on buildings, named perils on contents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Homeowners comprehensive form

A

All risks on all items, subject to exclusions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Common Characteristics

A
  • Clear language approach
  • Common format or structure
  • Policy definitions are uniform
  • Extensions of coverage
  • Basis of claim payment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Who is insured:

A

Spouse/partner of the named insured
Relatives either the named insured or spouse
Anyone under 21 in the care of insured
Students away at school

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Dwelling

A

The building described on the Coverage Summary page occupied by the named insured as a private residence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Premises

A

All land within the lot lines where the dwelling is located

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Property Coverage

A

A - Dwelling Building
B - Detached Private Structures
C - Personal Property
D - Additional Living Expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Liability Coverage

A

E - Personal Liability
F - Voluntary Medical Payments
G - Voluntary Payment for Damage to Property
H - Voluntary Compensation for Residence Employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Coverage A – Dwelling Building

A

Includes the dwelling and attached structures, PLUS
• Permanently installed outdoor equipment
• Outdoor swimming pools and attached equipment
• Materials/supplies for construction, alteration or repair of the dwelling or private structures on the premises (NO THEFT)
• Building fixtures/fittings temporarily removed for repair or seasonal storage (10% amount of insurance)
• Outdoor trees/shrubs/plants (5% amount of insurance)
Max $500 per item
Fire, lightning, explosion, aircraft/land vehicles, riot, vandalism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Coverage B – Detached Structures

A

Any structure on the premises separated from the dwelling by a clear space:
• May be attached by a fence or utility line
• Must be used for private purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Coverage C – Personal Property

A

Three types of property are covered:
• On Premises Coverage

• Off Premises Coverage

• Property of Students
While temporarily away from home attending school

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Exclusions to coverage C Personal Property

A

• Motorized vehicles and their equipment
EXCEPTION –motorized lawnmowers, other gardening equipment, snow blowers

Wheelchairs/scooters with more than 2 wheels used to carry persons with physical disabilities

  • Camper units, truck caps, trailers or their equipment
  • Aircraft or their equipment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Special Limits of Insurance: All Causes of Loss:

A 
Business Property - $2000
Securities - $2000
Student Property - $2500
Money, Cash Cards - $200
Garden Tractors - $5000
Watercraft - $1000
Computer Software - $2500
Spare Auto Parts - $1000
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Special Limits of Insurance: Theft Only

A 
Jewellery/Watches - $2000
Numismatic Property - $200
Manuscripts, Stamps - $1000
Collectible Cards - $1000
Each Bicycle - $500
**Limit does not apply to losses OTHER than theft
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Coverage D: Additional Living Expenses

A

• Increased costs to maintain same standard of living after an insured peril causes damage to insured property
Payable for reasonable time to do repairs or time to settle elsewhere

  • Fair Rental Value
  • Prohibited Access by Civil Authority
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Fair Rental Value

A

From a portion of the dwelling that cannot be occupied due to damage cause by an insured peril

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Prohibited Access by Civil Authority

A

When an insured peril in the area makes it unsafe to be on
the insured premises
2 weeks coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

On Premises Coverage

A

Contents of Dwelling

Other property owned/used on premises usual to ownership or maintenance of a dwelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Off Premises Coverage

A

Temporarily off premises anywhere in the world

Personal property stored in a warehouse for theft only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Extension Coverage: Debris Removal

A

Additional 5% provided when loss greater that amount of insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Extension Coverage: Property Removal

A

Coverage for 30 days or expiry of policy is provided to protect removed property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Extension Coverage: Moving to Another Home (within Canada)

A

Coverage is automatically extended to insure property in transit and at another location up to 30 days, or expiry of the policy (whichever is first).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Extension Coverage: Fire Department Expenses

A

Up to $1,000 for fire department charges (no deductible applies).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Extension Coverage: Change in Temperature

A

Physical damage to the dwelling or equipment due to an insured peril,
• Property being claimed was in the dwelling at time of loss.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Extension Coverage: Freezer Food

A
  • $2,000 (no deductible)
  • Accidental power interruption
  • Mechanical Breakdown (replaces the freezer if due to food spoilage)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Extension Coverage: Lock replacement

A
  • $500 (no deductible)

* To replace or re-key locks

28
Q

Extension Coverage: TEAR OUT

A

Repairs to other parts of the building torn apart to repair water damage.

29
Q

Extension Coverage: Arson Conviction Reward

A
  • $1,000 (no deductible)

* Information leading to the conviction of the arsonist

30
Q

Extension Coverage: Credit or debit cards

A
  • $1,000 (no deductible)

* Forgery and receipt of counterfeit money

31
Q

Extension Coverage: Inflation Protection

A
  • Automatically increases the amount of insurance due to inflation for amount of insurance under Section I
  • This is applied when there is a loss during the policy period, without extra premium charge
32
Q

Deductibles

A

Applies to all property losses unless stated
otherwise

Applies to each occurrence

Applies to the loss, not the limit of insurance

33
Q

Dwellings & Detached Structures

A

Replacement Cost (with due diligence & dispatch)

  • On same location
  • For the same occupancy
  • From materials of similar quality

Excludes increase cost due to by-laws

Reverts to actual cash value if not repaired
or replaced

34
Q

Guaranteed Replacement Cost

A

Insurer will pay the full cost of repair or
replacement even if it is more that the limit for
the dwelling building, if underwriting criteria met:

  • Dwelling must be insured to 100% of value at
    all time
  • Insured must advise insurer of improvements
    increasing dwelling value within 90 days of start
    of work
35
Q

Personal Property

A

Replacement cost basis, except:
- Articles that cannot be replaced.
- Articles for which age contributes to value.
- Property not maintained in good, workable
condition.
- Property not used for its original purpose

Electronic media and books of account are
subject to a special basis of settlement: cost of
materials only (excludes cost to recreate lost
data).

36
Q

Determining Indemnity

A

Difficult to determine with rules such as Pair & Set or Parts

Factors Used – the policy will pay the least of:
• ACV of the damaged property at the time of loss
• Insured’s interest in the property
• Limit of insurance

37
Q

CLAIMS PAYMENT OTHER BASIS OF SETTLEMENT

BUILDINGS SUBJECT TO PROVISIONS:

A
  • Replacement with due diligence and dispatch
  • Shall be on the same/adjacent site
  • Like kind/quality of materials for same occupancy
  • Settlement will be made once work complete
38
Q

CLAIMS PAYMENT OTHER BASIS OF SETTLEMENT

PROPERTY, INSURED MUST SHOW:

A

Property was in good working condition and used for
its original purpose at the time of loss

Property was repaired/replaced promptly

39
Q

Coverage Limits for Coverage A

A

• Based on 100% of the Replacement Cost of the Dwelling

40
Q

Coverage Limits for Coverage B

A

• Up to 10% of Coverage A

41
Q

Coverage Limits for Coverage C

A

• Up to 70-90% of Coverage A

42
Q

Coverage Limits for Coverage D

A

• Up to 20% of Coverage A

43
Q

Single Coverage Limit

A

where Coverage A-D are combined to one limit

44
Q

Homeowners Basic Form IBC 1151 Included Perils:

A

Fire, lightning, explosion, smoke
Falling object, impact by aircraft/land vehicle, riot
vandalism, malicious acts, water damage, windstorm or hail, glass breakage, transportation, theft or attempted theft, electricity.

45
Q

Basic Form: Fire, Lightning, Explosion

A

Fire
• Excludes application of heat

Lightning
• Includes damage to electrical devices or
appliances

Explosion
• Covers all explosions except ‘Water Hammer’

46
Q

Homeowners Basic Form; Smoke

A

“Damage due to a sudden, unusual, and faulty
operation of any heating or cooking unit in or
on the premises, but not smoke from
fireplaces.”

• Damage from fireplace not insured

47
Q

Homeowners Basic Form: Falling Object

A

An object that is falling which strikes the exterior of the building

48
Q

Homeowners Basic Form: Impact by Aircraft/Vehicle

A

Does NOT include:
• Damage caused by an insured or any employee of the insured
• Damage to animals

49
Q

Homeowners Basic Form: Riot, Vandalism, Malicious Acts

A

Riot
• All damage covered

Vandalism and Malicious acts covered with exceptions

50
Q

Homeowners Basic Form Vandalism & Malicious Acts, exclusions:

A

• While under construction or vacant
Even if permission granted
• Damage caused by insured
• Theft or attempted theft

51
Q

Homeowners Basic Form: Water Damage Coverage

A

• Sudden and accidental escape of water or steam from:
Water main
Heating, plumbing, air conditioning system, domestic water container inside & outside the dwelling

 Outside the dwelling is covered is NOT covered for freezing
Water entering premises through hole created by an insured peril

52
Q

Homeowners Basic Form: Water Damage NOT covered

A

• Freezing during the normal heating season
if away more than 4 consecutive days
• Seepage or leakage of water
• Sewer backup
• Ground water or rising water tables
• Surface water (unless due to insured water
loss)
• Shoreline ice build-up or waterborne ice
• To the watermain or piping
• While vacant or under construction,
regardless of permission

53
Q

Homeowners Basic Form: Windstorm & Hail

A

Opening must be created for the interior of the dwelling and personal property inside to be covered.

54
Q

Homeowners Basic Form: Windstorm & Hail NOT covered

A
  • Interior damage, unless storm creates opening to building
  • Outdoor radio/TV antennae
  • Weight of ice or snow
  • Waves or floods, whether driven by wind or not
55
Q

Homeowners Basic Form: Glass Damage

A

Covers building glass when broken accidentally
• Accidental glass breakage includes shifting of ground or other earth movement.
• Accidental glass breakage includes accidents.

56
Q

Homeowners Basic Form: Glass Damage NOT covered

A

• Does not include coverage while the building is vacant or
under construction
Regardless if permission is granted

57
Q

Homeowners Basic Form: Transportation

A

Damage to personal property by collision, upset, overturn, derailment, stranding or sinking of any automobile or attached trailer in which insured property is being carried.

• Includes any other conveyance of a common carrier

58
Q

Homeowners Basic Form: Theft/Attempted Theft

A

Theft defined: all means of taking property without the owner’s consent.

59
Q

Homeowners Basic Form: Theft/Attempted Theft NOT covered

A
  • Personal property left at locations you own, rent, occupy unless temporarily living there
  • From part of dwelling rented to others if theft by tenant, member of their household or their employee
  • Materials when dwelling is under construction
  • To animals, birds or fish
  • Resulting from trickery or fraud
60
Q

Homeowners Basic Form: Electricity

A

Sudden and accidental damage from artificially generated electrical currents

61
Q

Homeowners Basic Form: Property that is not insured

A
  • Buildings used for business or farming
  • Property at fairground/exhibition for purpose of exhibition
  • Illegal property, subject to forfeiture
62
Q

Homeowners Basic Form: Nor Does the Policy Insure Loss or Damage When….

A

• Occurring after the property is vacant beyond 30 days
• Resulting from intentional or criminal acts, or failure to act by
the insured or anyone acting on their behalf
• Involving the application of Heat (ensuing damage covered)
• Resulting from the release, discharge or dispersal of fuel oil

63
Q

Homeowners Broad Form (IBC 1153)

A

All Risks
• Section A – Dwelling
• Section B – Detached Structures
• Section D – Additional Living Expenses

Named Perils
• Section C – Personal Property
• Same as the Basic Form

64
Q

Homeowners Comprehensive Form (IBC 1155)

A

All property owned by the insured is covered on an
‘All Risks’ basis

The coverage is determined by the exclusions

65
Q

Comprehensive Form

Exclusions - PROPERTY:

A

Buildings or Structures used for business or farming
Property at a fairground or on exhibition
Property Illegally acquired
Evidence of debt or title
Automobiles (except lawnmowers & wheelchairs)
Camper units, truck caps, trailers or their equipment
Aircraft or their equipment
Electronic equipment of the above & watercraft

66
Q

Special Policies and Endorsements

A 
Watercraft
Personal Computers
Coin & Stamp Collections
Jewelry, Furs
Antiques
Fine Arts
Cameras
Silverware, goldware, pewterware
TV antenna and satellite dishes
Musical instruments
67
Q

Home Based Business

A

Insurers may be willing to endorse habitational policies with a Home Based Business Endorsement
• Coverages vary, but most insurers include:

Business Contents
Computer Hardware & Software
Temporary Locations
In transit coverage

CAIB 1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions